TWIA’s 2021 reinsurance tower is 57% multi-year catastrophe bonds

TWIA’s 2021 reinsurance tower is 57% multi-year catastrophe bonds

So, including TWIAs $400 million Alamo Re II Pte. Ltd. (Series 2020-1) catastrophe bond issuance and $200 million of Alamo Re Ltd. (Series 2019-1) cat bonds, the insurer now has $1.1 billion of multi-year reinsurance from disaster bonds, with staggered maturity dates.
That will benefit TWIA as it goes into future reinsurance renewals, as the multi-year and staggered nature will likely make it more affordable over the long-term.
All of TWIAs reinsurance tower provides aggregate defense, indicating the insurance provider is covered need to multiple storms strike Texas this year.
The insurer commented, “TWIA will start another cyclone season in a strong financial position with access to $4.03 billion secured for the 2021 storm season. To satisfy the Associations statutory funding requirement to react to a 1-in-100-year storm season, the financing consists of $1.9 billion in reinsurance attaching above the $2.1 billion in statutory funding sources.”
Obviously, this year TWIAs program might have been much bigger, as the insurance companies personnel had actually deliberated over buying an additional nearly $1 billion of security.
That would have included another disaster bond, as TWIA was targeting to continue mixing alternative and conventional reinsurance sources in the additional layer, if it had been acquired.
TWIAs Board ended up ballot versus securing the additional security, deciding that taking its financing up above the 1-in-100 year statutory level and asking insurers in Texas to pay member assessments for it was unneeded.
Check out everything about every disaster bond TWIA has actually ever sponsored in our Deal Directory.

The Texas Windstorm Insurance Association (TWIA) has more demonstrated its dedication to the catastrophe bond market at its 2021 reinsurance renewal, with multi-year protection from the capital markets now comprising 57% of its $1.93 billion program tower.As weve been reporting over recent weeks, TWIA effectively doubled in size its new Alamo Re Ltd. (Series 2021-1) catastrophe bond transaction as part of this years reinsurance renewal.
That new Alamo Re feline bond offer began life at $250 million in size, but by close it had grown to supply the insurance company $500 countless three-year annual aggregate and indemnity activated reinsurance security, covering losses from named storms and severe thunderstorms in Texas.
The restored reinsurance tower for TWIA suggests that the new feline bond attaches at $2.1 billion of losses and covers a share of the personal market defense up to $4.03 billion.
This is shared with a freshly protected $830 million piece of standard reinsurance, in addition to TWIAs staying in-force $600 countless cat bonds from previous years issuances.
You can see TWIAs reinsurance program layer chart below.

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